Artificial Intelligence has been tremendously improving the companies and businesses all around the world. The development of AI can also enhance the working of blockchain technology and the cryptocurrency industry, significantly. This intelligence can secure the processes of trading and its security.
We live in nothing without the ease we have from the smartphone to online shopping. A rapid advancement has been marked during this century in the field of technology in all aspects of human experience and interactions.
When all the tech companies are approaching AI for developing, how can cryptocurrency stay behind? The distributed ledger technology (blockchain) and cryptocurrencies have incredibly exceeded the expectations of its users.
Cryptocurrency has the potential to compete with fiat currency.
Let us take a deeper look at how artificial intelligence can impact the distributed ledger technology.
Cryptocurrency Trading
Blockchain technology has immensely improved after the crisis era. As this industry has been attracting a considerable number of users and investors, it has successfully proved that doubters were wrong. December of 2017 made history for cryptocurrency, as bitcoin’s price jumped to $20,000 ( the highest price of all time). It made cryptocurrency gain more fame and attention. Moreover, as a result, the industry is currently having a market capitalization of more than $339 billion.
The impacts of Artificial Intelligence are increasing on cryptocurrency trading day by day. The reason behind it the increased number of investors joining the blockchain space. The benefits cryptocurrency trading is enjoying from the fast, impartial, and effective AL trading bots have supported in avoiding slippage.
Also, the performance has become technically accurate, along with better analyses of fundamental trading decisions. Ultimately, a huge number of traders have observed an increase in their profits while the losses are significantly low.
Blockchain Security
Blockchain technology is widely tested when security Is concerned. It has also suffered 51% attacks, and approximately $9 million has been lost in cryptocurrency scams. Therefore, the risk was high, and the task to protect the user’s coins from fraud has taken very seriously from the start of the technology.
It has been noticed that the hacks and attacks on the blockchain are generally very sensitive to time. The first response to the hack becomes very critical, and many crypto exchanges fail to detect or deal with the attack.
Fortunately, the cybersecurity systems based on artificial intelligence are powerfully designed for identifying all types of threats/dangers in real-time. They understand the type and nature of the attack and specifically prevent future threats by blacklisting the related sources. This AI is capable of detecting the patterns associated with the attack, keeping them safe, and deals with future attacks more actively.
Bitcoin Mining
In order to maintain the integrity of the blockchain, transactions need to be verified and then added by the bitcoin miners. In return, these miners receive cryptocurrency. This process is quite complex l and sensitive. It requires several graphic process units.
For making it more efficient, considerable numbers of mining companies have rushed to AI-based GPUs. By the use of unique AI algorithms, bitcoin mining has become faster and more profiting.
The Bottom Line
Human intelligence has been replicated many years ago, but has got such applications in machines as Artificial intelligence within the last decade. Almost all tech companies are making ways to adopt this technology, and cryptocurrencies will massively develop by taking full advantage of this technology in the coming years. Due to which the expectation of growth in the market size is $126 billion in 2025.
Video – Cryptocurrencies
Interesting related article: “What is a Cryptocurrency?”